Supply chain dilemma: Risks and issues

Not knowing where to begin in resolving an issue when it arises is simply just as good as the problem not being solved. This is the sad reality for most supply chain managers. True enough, managing risk in supply chains can be very overwhelming, oftentimes leaving them petrified.

Concerns surrounding supply chains have been increasingly felt across many organisations. In fact, according to Zurich Insurance's 2014 Supply Chain Resilience Survey, 73.5 per cent of organisations surveyed said they do not have full visibility into their supply chains and 76 per cent of respondents reported at least one instance of supply chain disruption last year. In addition, 44.4 per cent of disruptions originate below Tier 1 suppliers, while 28.6 per cent reported low management commitment to the issue of supply chain resilience. Likewise, loss of productivity (58.5 per cent), increased cost of working (47.5 per cent) and loss of revenue (44.7 per cent) were the most commonly reported consequences of supply chain disruptions.

Taking a step-by-step approach can help. Solid planning, carefully planned and executed, not only reduces risk but also can increase supply chain efficiency, enhancing the organisation's bottom line.

Take a look at the infographic below from Arkieva to get some tips on managing supply chain risk.

- Hailey Lynne McKeefry
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